Red tape blocking investments
Bureaucracy is putting the brake on investments worth 2.5 billion euros in the sector of renewable energy sources (RES), representatives of four leading Spanish companies said yesterday, as Greece trails its European peers in developing alternative power systems. The comments come at a time when Greece’s record in attracting foreign direct investment (FDI) is among the worst in Europe. Representatives of four Spanish companies operating in Greece – Acciona, Endesa, Iberdrola and Gamesa – pointed to red tape as the main obstacle to their investment plans. The lack of a national land registry, government departments with overlapping responsibilities and poor communication with local authorities were some of the problems cited by the power firms. Jesus Olmos, general manager at Endesa Hellas, which plans to invest 1.6 billion euros in Greece, said the mountain of paperwork demanded by the Greek government can result in a delay of five years for a single permit. On a national level, Greece generates only about 760 MW of power from renewable energy sources, less than 5 percent of its energy capacity. Despite the problems, investor interest in the sector remains strong. Acciona plans to invest some 500 million euros in Greece’s windpower sector over five years. Fernando Ferrera, Acciona Energy’s director of international development for Europe, said Greece was one of the top three markets for the company in Europe, along with Italy and Poland. «The objectives of the Greek government in renewable energy are very ambitious, just as they were in Spain,» Ferrera told Reuters. «We want to export the experience we have in Spain to the Greek market. .. Greece is still eight or nine years behind Spain (in renewable energy).» Greece’s notorious red tape is scaring away foreign investors from a number of sectors, as shown by recent data published by the European Commission. FDI in 2007 slumped to 1.4 billion euros in 2007 from 4.3 billion in the previous year. (Kathimerini, Reuters)
